| A | B |
|---|
| Salaries payable: | Wages owed to employees. |
| Income taxes payable: | Monies due to the government. |
| Notes payable: | Amounts owed for large loans. |
| Net worth: | The monetary value of the business; assets minus liabilities. |
| Balance sheet: | A financial statement that shows what a business owns, what it owes, and how much it is worth at a particular point in time. |
| Assets: | Items of value owned by the business. |
| Current Assets | Cash or other items that can easily be converted to cash |
| Inventory | Quantities of goods and materials on hand |
| Supplies | Assets used up in business operations |
| Accounts Receivable | Sales that have been made but not collected |
| Fixed assets | Items of value not easily coverted into cash |
| Intangible assets | Items of value that cannot be seen or touched |
| Copyright | Legal right to produce or distribute an artistic work |
| Patent | Exclusive right to produce an invention for 20 years |
| Trademark | Registered name or symbol that can only be used by a certain business |
| Goodwill | Customers' approval & support of a business |
| Liabilities | Debts owed by a business |
| Other assets | Cash value of life insurance; retirement plans |
| Current liabilities | Financial obligations due w/in a year |
| Accounts payable | Expenses incurred but not paid |
| Long-term liabilities | Financial obligations that will take > year to pay |
| Mortgage | Loan to purchase a building |
